(Updates prices)July 28 (Reuters) - Copper prices sat near six-week highs onWednesday as investors waited for details from a Federal Reservemeeting that could shift expectations for U.S. monetary policy.
Wider markets, meanwhile, calmed after days of turmoilemanating from China, with global stock markets, the dollar andthe yuan steadying.Benchmark copper on the London Metal Exchange (LME)was down 0.5% at $9,714.50 a tonne at 1600 GMT after reaching$9,924 on Tuesday, its highest since June 15.
Used in power and construction, copper rose to a record highof $10,747.50 in May. It is up around 25% this year after rising26% in 2020, with some analysts saying strong demand and tightsupply could push prices still higher."The supercycle is alive and kicking, hasn't gone away,isn't dead, and therefore you want to buy the dips," said RobinBhar, an independent analyst.
"The fly in the ointment is if the Fed starts talking abouttapering to begin next year," he said. "But the underlyingthemes are bullish."
POLL: A Reuters poll of 23 analysts returned a medianforecast for copper to average $9,000 in the fourth quarter. FED: A statement is due at 1800 GMT with a news conferenceby Chairman Jerome Powell expected half an hour later. CHINA DEMAND: Demand for commodities in China, the biggestconsumer of raw materials, will likely slow in the second halfof 2021, but copper demand should remain strong due to subsidiesfor offshore wind projects, consultants Wood Mackenzie said.
CHINA STOCKS/PREMIUM: Copper stocks in Shanghai FuturesExchange (ShFE) warehouses are below 100,000 tonnes from almost230,000 tonnes in May, and Yangshan copper import premiums havedoubled since the start of July, pointing to rising demand foroverseas metal.LME STOCKS: However, inventories in LME-registeredwarehouses, at 230,225 tonnes, are the highest since June 2020. ALUMINIUM: Cash aluminium on the LME has flipped to a $9premium against the three-month contract from a $20 discount twoweeks ago, pointing to tighter supply of quickly deliverablemetal. PRICES: Aluminium was up 1.5% at $2,528 a tonne,zinc fell 0.4% to $2,970, lead rose 0.6% to$2,352, tin added 0.3% to $34,490 and nickel was1.2% higher at $19,585. (Reporting by Peter HobsonAdditional reporting by Mai Nguyen
Editing by Jan Harvey, Mark Potter and Barbara Lewis)